Jollibee buys remaining 30% in China food manufacturer

Jollibee Foods Corp. (JFC) has acquired the remaining 30-percent equity in joint venture Happy Bee Foods Processing Pte. Ltd.

"The objectives of the acquisition of the 30 percent ownership of Happy Bee, which gave JFC 100 percent ownership of the food processing facility, are to enable JFC ‎to concentrate on supporting the growth of its Yonghe King business and on further improving its food quality and increasing the assurance of its food safety," JFC noted.

Yonghe King is JFC’s largest business in China with 316 stores as of end-October 2016 and contributes 8 percent to JFC’s system wide sales worldwide.

Happy Bee is a joint venture between JFC subsidiary Jollibee Worldwide Pte. Ltd. (JWPL) and Hua Xia Harvest Holdings Pte. Ltd.

Government and other regulatory approvals were given by the People's Republic of China for the transaction to be consummated, JFC told the Philippine Stock Exchange on Thursday. "JWPL now owns 100 percent of Happy Bee Anhui in China."

A wholly foreign-owned enterprise incorporated in China, Happy Bee Anhui operates a manufacturing facility in Anhui that services the requirements of JFC’s Yonghe King business and produces and sells food for business institutions other than JFC brands.

"With the change in ownership, Happy Bee will no longer produce and sell food products to institutions other than JFC’s restaurant businesses," JFC noted.

In February, JFC disclosed the plan to buy the remaining 30 percent stake in Happy Bee.

"As consideration for the acquisition of the additional 30 percent, JFC through its subsidiaries has effectively conveyed to Hua Xia certain manufacturing facility assets worth $10,342,145.37 related to the production and sale of products for outside institutions," according to JFC.

JFC has minimal net cash outlay for the acquisition, it said. — Ted Cordero/VDS, GMA News